Subsidy Viability Report (SvR) – Agri Warehousing Business in Gujarat

The Subsidy Viability Report (SvR) is a practical guide for entrepreneurs, investors, and businesses exploring the Agri Warehousing sector in Gujarat. It provides a strategic roadmap to leverage state and central subsidies under the Gujarat Integrated Logistics & Logistics Park Policy, 2021, along with benefits from the Agri Infra Fund (AIF) and NABARD schemes.

This report helps stakeholders understand how to reduce costs, optimize investments, and maximize returns while tapping into the rapidly growing warehousing and logistics ecosystem in Gujarat.

Who Can Benefit?

The report is designed for a wide range of stakeholders who want to build, expand, or invest in warehousing and logistics projects in Gujarat, including:

Food Grain Storage Operators – Construct warehouses to store grains and avail subsidy benefits.
Commission Agents & Traders – Store products when prices are low and sell them at higher margins.
Farmers & Agri Traders – Build warehouses for personal use or generate income by renting them out.
Wholesale & Retail Traders – Save on rentals and gain profits by storing goods at the right time.
Food Processing Units & Agro-Based Industries – Secure storage for raw materials and finished goods.
Industrial Goods Manufacturers – Manage inventory and reduce operational bottlenecks.
Logistics & Transport Companies – Build storage instead of leasing and earn additional income.
Distributors & 3PL Companies – Construct warehouses for managing distributorships or relocating operations.
Real Estate Developers, Builders & Property Dealers – Construct and lease warehouses for steady rental income.
Land Owners near Highways – Capitalize on location advantages by building godowns.
Government Procurement Agencies (FCI, CWC, etc.) – Expand food grain storage capacity through private participation.
Banks & Investors – Finance or invest in projects for long-term profitability.
Supply Chain & E-Commerce Businesses – Establish fulfillment centers and storage units.
Packaging & Primary Processing Units – Add value through sorting, grading, processing, and packaging.

In short, anyone engaged in storage, logistics, trading, or processing of agricultural/industrial goods can benefit from this subsidy-backed opportunity in Gujarat.

Key Subsidies & Incentives

Some major financial benefits covered in the report include:
- Capital Subsidy – Up to ₹15 crore (25% of Eligible Fixed Capital Investment).
- Interest Subsidy – 7% subsidy for 7 years (max ₹50 lakh per year under state policy); 3% subsidy under AIF on loans up to ₹2 crore.
- NABARD Subsidy – Up to ₹1 crore (capital cost subsidy for 5,000 MT storage capacity).
- Stamp Duty Refund – 100% reimbursement for new projects.
- Electricity Duty Exemption – 100% for 5 years.
- Tax Benefits – 100% capital expenditure deduction under Section 35AD of IT Act.
- Skill Development & Technology Assistance – Up to 100% reimbursement in specific cases.

Eligibility Highlights

To qualify, a unit must:
- Be registered as Proprietorship, Partnership, Company, Trust, NGO, etc. (Govt. departments excluded).
- Invest at least ₹1 crore in logistics facilities (other than parks).
- Maintain 85% local employment (60% in managerial roles).
- Operate for at least 10 years post-incentive.
- Not claim under multiple state schemes simultaneously.
The policy is valid from Aug 2, 2021 to Aug 1, 2026.

How KIP Helps in Warehousing Business

KIP4business provides end-to-end support to make projects subsidy-compliant and profitable:
✅ Subsidy Viability Report (SvR) – Tailored to project type & location.
✅ Business Modelling – Maximizing incentive eligibility.
✅ Registrations & Compliance – MSME, GST, GeM, Startup, etc.
✅ Detailed Project Report (DPR) – Bank-ready with subsidy calculations.
✅ Financing Support – Loan documentation & processing at lower interest rates.
✅ Subsidy Filing & Processing – AIF/NABARD/State subsidy applications.
✅ Compliance Management – Ensuring timely claim of regular incentives.
✅ Sector-Specific Add-ons – Tender updates, bid assistance & business opportunity alerts.

Frequently Asked Questions (FAQs)

Q1. Which policy covers warehousing subsidies in Gujarat?

The Gujarat Integrated Logistics & Logistics Park Policy, 2021, along with AIF and NABARD.

Q2. What types of subsidies are available?

Capital subsidy, interest subsidy, NABARD subsidy, stamp duty refund, electricity duty exemption, skill development & technology assistance, and income tax benefits.

Q3. Who is eligible?

Entrepreneurs, traders, investors, and companies registered as legal entities with a minimum investment of ₹1 crore in logistics/warehousing.

Q4. How long is the policy valid?

Till August 2026, unless extended or revised.

Q5. Can KIP help with subsidy and project execution?

Yes

Q6. What projects qualify under AIF?

Warehouses, silos, cold storage, and post-harvest infra for cereals & millets.